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The impact of alternative public policies on the deployment of new communications infrastructure - a survey
Briglauer, Wolfgang
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Frübing, Stefan
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Vogelsang, Ingo
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URL:
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https://ub-madoc.bib.uni-mannheim.de/38031
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URN:
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urn:nbn:de:bsz:180-madoc-380313
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Dokumenttyp:
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Arbeitspapier
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Erscheinungsjahr:
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2015
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Titel einer Zeitschrift oder einer Reihe:
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ZEW Discussion Papers
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Band/Volume:
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15-003
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Ort der Veröffentlichung:
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Mannheim
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Sprache der Veröffentlichung:
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Englisch
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Einrichtung:
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Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
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MADOC-Schriftenreihe:
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Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
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Fachgebiet:
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330 Wirtschaft
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Fachklassifikation:
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JEL:
L43 , L44 , L96,
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Freie Schlagwörter (Englisch):
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Survey , policy framework , investment , new communications infrastructure , regulation , competition , subsidies
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Abstract:
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Our survey reviews the theoretical and empirical literature on all alternative policies to
promote the deployment of new fiber-based communications infrastructure. Since such
investment is expected to induce substantial positive externalities, dynamic efficiency
becomes a particularly important policy goal. The available policies refer to i) different
kinds of ex ante sector-specific regulations including cost-based access regulations as
well as softer regulations such as regulatory holidays or geographically differentiated
regulations, ii) deregulatory approaches based on effective competition law
implementation and competitive market structures including allowance of co-investment
models, and iii) public subsidies to cover non-profitable (“white”) areas. Our survey
identifies the most significant research gaps, finding that numerous studies related to the
impact of access regulations exist, whereas only a much smaller branch of literature
addresses the impact of competition policies, and even fewer studies analyze the impact
of public subsidies on new communications deployment. Moreover, our work allows for a
generic framework for policy recommendations that identifies the comparative advantages
of the individual policy options for different market structures and for varying degrees of
externalities. We find that public subsidies are the dominant policy alternative in white
areas, whereas access regulations can be the preferred policy in white or “grey” areas,
where only monopoly structure or co-investment models lead to private investment.
Deregulatory policies might be preferable in grey areas, if there is sufficient pressure from
competitive outside options and if competition law is strong. Finally, deregulatory policies
including soft regulation are the dominant policy in “black” areas, where several
independent infrastructure operators exist.
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